Following significant investments from key industry players and renewed focus on the sector from government, South Africa has emerged as a global destination of choice for Business Process Services (BPS).
“In an unprecedented and seminal moment for the market, a sitting president specifically mentioned the BPS sector in a State of the Nation Address,” comments Kabelo Makwane, MD for Operations at Accenture in Africa.
“President Ramaphosa’s commitment to ‘focus on the export of manufactured goods and trade in services such as business process outsourcing and the remote delivery of medical services’ should attract significant global business to the sector.”
Global companies traditionally favour locations in the east like India and the Philippines as BPS destinations, due largely to the large pools of skilled, English-proficient workers and the labour arbitrage opportunities offered by the regions’ cost competitiveness.
However, South Africa’s BPS industry stakeholders have made significant efforts to develop and promote hubs of competency within the major economic regions of Gauteng, the Western Cape and Kwazulu-Natal. These efforts have yielded compelling results, with the local BPS industry growing 22% annually over the past four years, according to research by Everest Group, which is twice the global industry growth rate.
“South Africa’s BPS value proposition is predicated on multiple factors, including our well-educated and English-proficient workforce. Labour is also highly cost-efficient compared to other markets due to the relative strength of the rand,” elaborates Makwane.